The US Department of Justice (DOJ) has responded to Tornado Cash developer Roman Storm’s request to drop the criminal charges against him.
DOJ’s Arguments
The DOJ claims that Tornado Cash is a money-transmitting business, despite Storm’s argument that it does not control users’ funds. According to the DOJ, money transmitters in crypto include platforms that facilitate anonymous value transfers.
The DOJ also alleges that Storm and his team controlled certain user transactions on Tornado Cash between 2019 and 2022. They claim that the developers approved relayers (intermediaries) and used an algorithm to assign relayers to withdrawals.
Ongoing Legal Battle
The DOJ’s response intensifies the legal battle over Tornado Cash. The DOJ has accused the platform of allowing access to sanctioned parties, such as North Korean hackers. However, the DOJ’s attempt to hold developers responsible for platform usage has sparked concerns in the crypto community.
Implications for Crypto
This case could set a precedent for how US authorities regulate crypto developers. The outcome will have a significant impact on the future of web3 and the development of decentralized technologies.
